BLUE LANTERN RESPONSE ON EXPORT LICENSES 050132093 AND

UNCLAS SECTION 01 OF 02 CANBERRA 000990 SENSITIVE SIPDIS STATE FOR PM/DTCC JOUBERT-LINEEB AND EAP/ANP E.O. 12958: N/A TAGS: ETTC KOMC AS SUBJECT: BLUE LANTERN RESPONSE ON EXPORT LICENSES 050132093 AND 050192341 REF: SECSTATE 103101 ¶1. (SBU) U.S. Consulate-General Sydney Regional Security Officer and two Detectives from the Firearms & Organized Crime Squad of the New South Wales Police Force conducted a site visit to USML item end-user Lawrance Ordnance on October 21. The following information is provided in response to questions in reftel. --Is Lawrance Ordinance properly authorized to import and sell defense articles in Australia? A: Yes he is properly registered and licensed. NSW police had no issues or concerns. NSW firearms law storage requirements were met. --Do you have any information on Lawrence Ordnance that would question their reliability as a recipient of U.S. defense articles? A: None. --When was your company established and who are its principals? A: The company was formed in 1993 and Simon Lawrance is the sole principal. --What products and services does your company provide? Who are your regular customers and where do they reside? A: Lawrance deals in military collectables and firearms. His shop is full of WWI & WWII uniform replicas. Aside from Military collectors, regular customers of firearms are described as Australian farmers looking to shoot unwanted animals on their land and target shooters. --What are your annual sales of U.S.-origin firearms? A: Lawrance said that U.S. imports are only bolt action firearms, and his estimated annual volume percentage varies from 25-60% of firearm sales. --Do you sell firearms to customers that reside outside Australia? A: Lawrance said exporting firearms out of Australia required too much paperwork. --To whom do you usually sell Mosin M91/30 rifles? What are they generally used for? How many of these rifles do you generally sell per year? A: Collectors/Farmers/ Target Shooters. Over the course of 16 years approximately 300 - 400 a year. --Did Century Arms notify you in writing that Lawrance Ordnance is required to obtain a signed DSP-83 Nontransfer and Use Certificate, including serial numbers, for each customer that purchases the Soviet Mosin M91/30 Bolt Action Rifle and is required to send that signed DSP-83 back to Century Arms? If available, please provide any correspondence you received from Century Arms explaining these requirements. A: No. Lawrance stated that he had been told by Century Arms that it had been a point of discussion but he was under the impression that Century Arms and the U.S. State Department had resolved it, was not aware of the requirement upon him and had not received anything in writing informing him the requirement. Lawrance stated that he believed that it had been resolved by Century Arms with their argument that he was importing the firearms into Australia and that Australian citizens could not be made to sign US Government Legal Paperwork in Australia. He further eHhEHehEstated that he would be willing to share all of his documentation on the firearms and all Australian Government registration documentation (State & Federal) with U.S. Government authorities. Lawrence stated that while he was unaware of the requirement, if officially informed he would comply with it for future transactions if officially informed that it is required and he receives assurances it is allowed by Australian authorities. Lawrence stated that he was never provided a copy of the entire export license and that he was only provided parts of it. --Has Lawrance Ordinance obtained these signed documents as required Q--Has Lawrance Ordinance obtained these signed documents as required by the terms of U.S. export license 050132093? Please provide documentation demonstrating your compliance with these requirements. A: No, see above. CANBERRA 00000990 002 OF 002 --Are you familiar with the regulations governing the import of U.S.-origin defense articles, including restrictions on re-transfer or re-export? A: Yes. Lawrance stated that Australian authorities are similarly restrictive.